PAIR

Cross-Reference to Related Applications

[0001] This application claims the benefit of U.S. Provisional Patent Application

No. 62/618,881, filed January 18, 2018, the contents of which are incorporated herein by reference in their entirety for all purposes.

Field of the Disclosure

[0002] This relates to interfaces for interacting with cryptocurrencies.

Background of the Disclosure

[0003] Crypto-Currency products have no definitive price for use by investors, or derivative products / markets. The CME futures product is based upon an index of arbitrarily selected exchanges using a sampling methodology over arbitrary time periods and the Cboe relies currently on one exchange’s auction price at a specific time of day . Media outlets and other trading systems show prices of crypto-currencies from one exchange alone, yet any individual exchange can be far above or below the prices on other exchanges. Therefore, we describe a method, implemented using software developed by CoinRoutes LLC to calculate a price, called the CoinRout.es Rea!Price, based on the software’s calculated price to buy and to sell a defined quantity of the crypto-currency on all markets where the local citizens can transact the product being calculated. Such prices shall he calculated periodically, so as to provide a real time view of the price of the crypto-currencies, as well as to provide a trading benchmark or a series of prices for use by derivative products. Summary of the Disclosure

[0004] The invention is software that utilizes CoinRoutes distributed

cryptocurrency smart order router (DCCSOR) and the filter levels from the Filtered, Consolidated, Cryptocurrency Best Bid and Offer (FCCBBO), to periodically create both a bid price (RealBid), an offer price (RealOffer), and the average of both (RealPrice).

The software, at each time interval, calculates the cost of buying (RealOffer) and selling (RealBid), on all eligible displayed markets for each defined filter size. Eligibility for markets is defined m each location, such as the United States, based on whether or not the market accepts deposits and withdrawals in the pricing currency and allows trading of the crypto-currency pair by residents of that locality. The defined filter sizes are maintained by the CoinRoutes system and the standard RealPrice will correspond to the third filter level in tire system which, as of January 13, 2018 corresponds to 5 Bitcoin, 50 Ethereum, 250 Litecoin, and 25 BitCoin Cash. The method of calculation used by the software is to create a consolidated order book from all eligible markets and detennine the price to buy and sell the defined quantity for the product.

Brief Description of the Drawings

[0005] Figure 1 show's the system process flow including the databases and market data components employed.

[0006] Figure 2 shows the working user interface where the RealPrice, RealBid, and RealOffer are displayed at a point in time for BitCoin, Ethereum, LiteCoin, and BitCoin Cash in US Dollars.

Detailed Description

[0007] The CoinRoutes RealPrice software is a system that produces a stream of prices for clients to use as a benchmark for transacting in cryptocurrencies. All cryptocurrency products are represented by a pair of currencies. In each product pair, the first is a cryptocurrency that is the primary product being traded, and the second can be either a crypto or fiat currency, which is also referred to as tire pricing currency. For the sake of clarity, the first two examples of product-pairs implemented are BTC-USD and ETH-USD. In the example of BTC-USD, Bitcoin is the primary product and US Dollars is the pricing currency. In the example of ETH-USD, Ethereum is the primary product and USD is the pricing currency.

[0008] Design: The CoinRoutes RealPrice software utilizes a set of components that determine the eligible displayed markets, quantities of crypto-currency to analyze, poll or access the real time quotes from the displayed markets to create a consolidated order book, and, using that data calculates the average price that a hypothetically routed set of orders would result in. The system operates on a schedule to calculate prices at specified intervals in order to display historical movements of the price as well as to create time period averages.

[0009] Market Determination: The CoinRoutes RealPrice system has a data structure where markets (often called exchanges) are grouped by the eligibility of local residents to trade on that particular marke t. In the case of the RealPrice, which is designed to be denominated in currencies such as the US Dollar, for a market to be eligible, it must allow deposits and withdrawals in US dollars as well as trading in crypto currency pairs denominated in US dollars. The CoinRoutes system has a group, called US Dollar, which as of January 13, 2018 includes GDAX, Kraken, ItBit, BitStamp, Gemini, and Bitflyer USA.

[0010] Quantity Determination: Hie CoinRoutes system has implemented a variable called the“Size Filter” which is used for the calculation of the consolidated bid and offer throughout the system. There are five quantity amounts per crypto-asset, which for BitCoin on Januar 13, 2018 are 0.2, 1, 5, 10, and 20 Bitcoin. The design of the CoinRoutes RealPrice is to use the third filter level for the publicly disseminated value, which for BitCoin corresponds to 5.

[0011] Consolidated Order Book Creation: Hie CoinRoutes RealPrice system creates a consolidated order book from all the eligible exchanges by either accessing the full order book from exchanges with accessible real time feeds or on-demand polling from exchanges without feeds. All eligible exchanges quote data is consolidated into a full order book every period, with at least the best 500 bids and offers available to the calculation module. [0012] Price Calculation: The CoinRoutes RealPrice system calculates the

RealBid and RealOffer prices by an algorithm that ranks every bid or offer in price sequence after applying the default fees maintained by the system. Once the book is sequenced, the system determines the optimal quotes to access in order to complete an order of the determined quantity. Those quotes, including the fees estimated by the system for trading against those quotes, are aggregated to calculate the RealBid and RealOffer prices. The RealPrice is the simple average of the RealBid and RealOffer.

[0013] Price Dissemination: The CoinRoutes system displays the RealPrice along with the RealBid and RealOffer for BitCoin in US dollars and other crypto- currency pairs. In addition, CoinRoutes will publish the RealPrice via an API to clients.